DTN Before The Bell-Livestock

Cattle Paper Tried to Bounce Higher in Opening Rounds

(DTN photo by Nick Scalise)
GENERAL COMMENTS

The cash cattle trade this morning is very slow with both bids and asking pricing poorly defined. The lion's share of the week's biz may be done for the week. Cash hog bids has open in a wide range, off $1 to up $1. Generally speaking, the early country trade appears to have a steady/firm undertone. The early corn trade is 2 cents lower, ever weighed by plentiful supplies and the lackluster pace if export sales. Wall Street is lower in early morning action with the Dow off 124 points and the Nasdaq down by 27.

LIVE CATTLE:

It's been a rocky week for live futures, but the trade seems to be working on a bit of a repair project. Prices are currently trading 27 to 100 higher, supported by short covering/profit taking and cash premiums. Open interest on Wednesday decreased by 1,646 (363,263). Spot February liquidated by 3,393 (31,272) and April lost 142 (149,745). DTN projected slaughter for today is 118,000 head.

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FEEDER CATTLE:

Feeders issues are boucng with triple-digit gains so far this morning with prices up 100-160. The January 1 feeder cattle supply outside of feedlot was generally 2-3 percent below last year, and could be seen as supportive. Open interest on Wednesday decreased by 828 (53,473). CME cash feeder index for 01/30: 51, off 0.15.

LEAN HOGS:

Trade in lean hog futures has started out with a mostly higher tone with prices ranging from up 75 to off 2. Spot Feb is attracting buying interest tans to evidence of receny cash strength. Open interest on Wednesday decreased by 1,492 (240,749). Spot February liquidated by 944 (15,962) and April declined by 1,159 (101,998). Cash lean index 01/30: 73.85, up 0.01. DTN projected slaughter for today is 465,000 head. Saturday's kill should total close to 117,000.

John A. Harrington can be reached at john.harrington@dtn.com

(SK)

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